China Investment Corp. (CIC) and the Government of Singapore Investment Corp. (GSI) have invested a combined $1 billion in Cheniere Energy Partners LP’s Sabine Pass liquefied natural gas (LNG) export project in Louisiana, according to published reports.
But the companies aren’t releasing any information about the deal. A Cheniere spokesperson told NGI that the Houston-based company “does not comment on rumors and speculation,” and neither CIC nor GSI responded to requests for comments.
The Asian national companies have each invested about $500 million in Cheniere’s planned LNG facility, according to a Reuters report Tuesday. The information came from a source with knowledge of the matter, Reuters said.
In May Cheniere agreed to sell $1.5 billion in newly issued CQP Class B units to investment funds managed by Blackstone Energy Partners LP and Blackstone Capital Partners VI LP (see Daily GPI, May 16) and two Asia-focused investors — Temasek and RRJ Capital — agreed to put $468 million into Cheniere Energy Partners affiliate Cheniere Energy Inc. (see Daily GPI, May 8). The LNG developer said it would use the proceeds, combined with cash on hand, to buy $500 million of equity securities expected to be issued by Cheniere Energy Partners LP to finance Sabine Pass LNG (see Daily GPI, April 18).
Cheniere has said about $2 billion of equity and $3.6 billion of debt would fund the $5.6 billion project. Earlier this month Cheniere said it had completed all milestones and was moving forward with construction of the first two liquefaction trains for Sabine Pass (see Daily GPI, Aug. 13). The first liquefaction train is expected to begin operations as early as 2015, with the second liquefaction train expected to begin operations six-nine months later.
The liquefaction facility would permit Sabine Pass LNG and Sabine Pass Liquefaction, both units of Cheniere Energy, to liquefy and export up to 2.2 Bcf, or 16 million metric tons per year, of domestically produced gas. The project would be sited at Sabine Pass’ existing LNG import terminal in Cameron Parish, LA.
In January Cheniere entered into an LNG sale and purchase agreement with Korea Gas Corp. (Kogas) under which Kogas agreed to purchase 3.5 million tons per year of LNG (see Daily GPI, Jan. 31). Sabine Liquefaction previously entered into three other LNG sale and purchase agreements: a deal with a unit of BG Group plc, which was expanded earlier this year (see Daily GPI, Jan. 27), one with Gas Natural Fenosa (see Daily GPI, Nov. 22, 2011) and an agreement with Gail (India) Ltd. (see Daily GPI, Dec. 13, 2011).
ConocoPhillips, which had considered mothballing its Kenai LNG plant on Alaska’s Kenai Peninsula, said this week that it has sent three LNG shipments to Japan in recent weeks (see Daily GPI, Aug. 21).
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